Insurance helps people to feel more empowered and less fearful about life and the future. I’ll give you an example of what I mean: A few years ago in an Italian museum, I saw an insurance policy that had been taken out in 1582 to protect a ship and its cargo against piracy and storms. That insurance helped the ship owner dispel some of his fears of risk and perhaps even encouraged him to expand his trade routes.
Car insurance acts the same way, eliminating some fears about daily personal travel. And unfortunately, those fears can be legitimate. According to the World Health Organization, today road accidents are the number one killer of 15 to 29 year-olds around the world, and are the eighth leading cause of death globally. By 2030, it is predicted that road accidents will become the fifth leading cause of death, ahead of HIV/AIDS, diabetes, and both throat and lung cancer.
AIG insures millions of personal and commercial vehicles. By using data and analytics and by having conversations with our customers, we understand more and more every day about what causes road accidents, and what we can do to help prevent them. From that perspective, we believe that AIG, the private sector, and individuals can all play a role in making our roads safer. By working together, hopefully we can all help to slow the alarming statistics around traffic accidents.
Insurance has always been a powerful market force to incentivize safety. By using the power of technology, and leveraging our ability to analyze claims data, we have been able to help our clients and our clients’ clients become even safer road users. For example:
- AIG recently partnered with Europcar Ireland for a pilot project to determine if a “smoother” driver is a safer driver and if we could incentivize safer driving behavior. By using data from telematics devices on Europcar Ireland’s fleet, AIG was able to analyze speed, harsh acceleration and braking, and cornering speed of its rental cars, and then provide renters with a smooth-driving score. The study determined that high smooth-driving scores were linked to fewer accidents. In fact, the smart use of this data resulted in a reduction of claims by 23%.1 These innovative technologies and applications allow AIG to provide new data-driven insights that could help further improve the safety of our clients.
- By harnessing data available through our Client Centric Analytics initiative, AIG was able to supply our client with information to help them make better fleet purchasing decisions. Our analytics identified the model of vehicles associated with claims that were 20 to 30% more expensive than claims involving other models.
Part of AIG’s decision to become a founder of “Together for Safer Roads,” − a global private sector coalition aimed at improving road safety − was our belief that companies could more effectively tackle the issue of road safety by working together rather than alone.
As Vice-Chairman of the coalition, I am very optimistic about what Together for Safer Roads can achieve. Over the past two years, the coalition has grown to include some of the world’s most recognizable businesses, including AB InBev, AT&T, Chevron, Ericsson, Facebook, IBM, iHeartMedia, PepsiCo, UPS, Walmart, and others.
The coalition just released the Advancing Road Safety Best Practices for Companies and Their Fleets report. The report outlines practices that companies can use to keep employees, partners, and contractors safe on the world’s roads, as well as minimize costs. It’s a useful guide that can help companies big or small become safer road users.
Finally, we can also all do our part as individuals to make our roads safer. In some cases, that is simple: don’t drink and drive or text while driving. Other solutions – like examining your own driving style and modifying behaviors – may be helped by emerging technologies. What matters most is that we all do our part to make this world – and all the roads on it – a safer place.
To learn more about AIG and Road safety visit: www.aig.com/roadsafety
To learn more about Together for Safer Roads visit: www.togetherforsaferroads.org
1 Based on findings from pilot project with Europcar Ireland, May 2016